A Tale Of Two Markets

While home sales in Bend have increased from year earlier levels every month since February, breaking down the numbers to see what is selling reveals two vastly different markets.

Of the 176 closed sales last month, 35 sold from between $150k and $200k. Another 41 sold between $100k and $150k. And 7 sold for less than $100k. There are currently 213 houses listed for $200k or less. (I remember in the not too distant past when it was nearly impossible to find a house in Bend for less than $300k. But that's a story for another time!) At November's sales rate, there is just a little more than 2.5 months of inventory in this price range. To put it another way, it would only take until about the end of February to sell all the houses currently listed for $200k or less.

On the other end of the spectrum, there are currently 121 houses listed from between $500k and $1 million. There were 11 closed sales in this price range in November. This equates to 11 months of inventory. And as you might guess, the higher the price range, the greater the number of months of available inventory.

Over the past 12 months, there have been 20 sales from $750k to $1 million in Bend. 40 houses are currently listed for sale in this price range. That's 2 years of available inventory using the sales rate over the last year! But things may be getting a bit better in the higher end of the market; last month, 3 houses closed escrow with sale prices from $860k to $975k.

To find out how much your house is worth and how long it should take to sell, call or email me. As always, there's no cost or obligation.

Are You Stupid For Not Buying A House Now?

A recent article in BusinessWeek makes a good case for buying a home now while interest rates are at/near historical lows rather than waiting to see if home prices might decline further.

Also keep in mind that most home buyers qualify for a tax credit if they buy a house before June 30, 2010.

Lastly, there is talk that the down payment for FHA loans will increase to 5% of the purchase price from 3.5% today. For a $250,000 house, that means that you'll be required to come up with an additional $3750 down.

As the article's author states, "If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime."

Bend's November Home Sales Highest Since 2005

The number of closed home sales in Bend last month increased by more than 129% from a year ago. The 165 sales are the most for the month of November since 2005, when 252 sales were reported near the peak of home selling activity in Central Oregon.

Distressed sales continued to account for a large part of the overall number of closed sales, with bank owned/foreclosed properties making up 35.8% (59 houses) of the total sales and short sales an additional 23.6% (39 houses).

Home prices have reached a plateau, at least for the time being. With a median sale price of $116.33/sf, November marked the fourth consecutive month, and the sixth time in the last seven months, that the median sale price has been $113/sf or more.